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HB 7241

AN ACT RELATING TO TAXATION -- THE RHODE ISLAND FAMILY CAREGIVER TAX CREDIT ACT

2026 Regular Session Introduced by Jennifer Boylan and 9 co-sponsors

Rhode Island would offer a nonrefundable tax credit covering 50% of eligible at-home caregiving costs, up to $1,000 per caregiver per year.

05/14/2026 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · HB 7241

Overview

  • Bill: HB 7241 (Rhode Island)
  • Session: 2026
  • Subject: The Rhode Island Family Caregiver Tax Credit Act
  • Purpose: Establish a state personal income tax credit to reduce the out-of-pocket costs incurred by unpaid family caregivers who care for eligible family members at home.

Main purpose and intent

  • Recognize the financial burden on unpaid family caregivers who provide at-home care, often for relatives who are elderly or disabled.
  • Create a nonrefundable Rhode Island personal income tax credit to offset a portion of eligible caregiving expenditures.
  • Limit the credit to incentivize and support family caregiving while keeping state tax revenues considerations in mind.

Key provisions and changes

  • Creation of Chapter 44-30.4 (The Rhode Island Family Caregiver Tax Credit Act).
  • Definitions (44-30.4-2):
    • Activities of Daily Living (ADL): ambulation, feeding, dressing, personal hygiene, continence, and toileting.
    • Eligible expenditure: costs to enable the eligible family member to live at home and remain mobile/safe, including equipment, home modifications, and various caregiving services (home care aides, respite care, adult day care, personal care attendants, health equipment, technology). Excludes items/services reimbursable by insurance or tied to general household maintenance.
    • Eligible family caregiver: Rhode Island resident with federal AGI below $50,000 (individual) or $100,000 (couple) and who incurred uncompensated caregiving expenses.
    • Eligible family member: 65+, or with Social Security Disability benefits; resides with the caregiver for at least 6 months; not in an assisted living/nursing facility; requires help with at least 2 ADLs; related as a dependent, spouse, domestic partner, sibling, grandparent, grandchild, or second-degree relative.
  • Credit details (44-30.4-3):
    • Effective for tax years starting after December 31, 2026.
    • Credit amount: 50% of eligible expenditures.
    • Maximum credit: $1,000 per eligible caregiver per tax year.
    • If multiple caregivers claim for the same eligible family member, the $1,000 maximum is split equally among them.
    • Nonrefundable: cannot reduce tax liability below zero; no carryover to subsequent years.
    • Rhode Island Department of Revenue to issue regulations to administer the credit.
  • Relationship to existing tax law (amendment to 44-30-2.6):
    • The RI tax statute is updated to reference the new caregiver credit as one of the available credits against RI tax.
    • The bill retains other existing RI credits and tax structure, but explicitly adds the new caregiver credit as an eligible RI credit.

Who would be affected

  • Eligible family caregivers: Rhode Island residents with qualifying income and who incur eligible caregiving expenses.
  • Eligible family members: Seniors 65+ or persons with qualifying disabilities who require assistance with ADLs and live with the caregiver.
  • State fiscal impact: The credit reduces RI tax liability for eligible taxpayers by up to $1,000 per eligible caregiver (50% of eligible expenditures, capped). The measure anticipates coordination with tax regulations and potential effects on tax receipts, to be guided by DOR regulations.

Procedural and timeline aspects

  • Introduction date: January 21, 2026.
  • Referred to: House Finance.
  • Implementation date: Tax years beginning after December 31, 2026.
  • Administrative rules: The Department of Revenue must promulgate rules and regulations to implement and administer the credit.
  • Sunset/recapture: Nonrefundable; no carryover; no special sunset beyond the stated implementation date (2026+ tax years).
  • Explanation notes in the bill indicate the intent and scope, including findings about the financial and health stress on unpaid caregivers and average out-of-pocket expenditures (~$7,000 annually).

Summary in plain terms

HB 7241 would create a new Rhode Island tax credit for unpaid family caregivers. If you are a qualifying RI resident who spends money to care for a family member at home (up to 50% of eligible caregiving costs, capped at $1,000 per year per caregiver, and shared equally if more than one caregiver is involved), you could reduce your RI tax bill by up to $1,000. Eligible expenditures cover home modifications, equipment, home care aides, respite care, adult day care, personal care attendants, health equipment, and technology, but exclude expenses reimbursed by insurance or for general household maintenance. The credit is nonrefundable and cannot create a tax refund beyond zero, and it would not carry forward to future years. The bill directs the state Department of Revenue to adopt rules to administer the credit and sets eligibility thresholds based on income and caregiver/recipient relationship and needs. The measure takes effect for tax years beginning after 2026.

Compiled from official sources — confirm details with the bill’s official record.

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